How a smarter supply chain can help boost your company to the next level.
Adolescence can be a tricky time for companies too. Having made it through the start-up phase, a growth spurt hits that often demands more resources than are readily available.
“That’s when managers need to make sure they’re trimming costs as much as possible in order to save enough cash for growth needs, while offering the best-possible service so as to attract more customers,” says Grant Marshbank, Chief of Operations of VSc Solutions.
But, this is easier said than done, especially considering the pressure that mounting fuel costs and e-tolls are placing on growing companies that rely heavily on distribution.
“By employing smarter route-planning techniques, it’s possible for companies to save at least between 20-25% on fuel and fleet costs,” he says, describing the instant impact on the bottom line that using fewer vehicles in a more efficient manner can have.
According to Marshbank, excellent solutions are being introduced to market that offer growing companies ‘big-company’ functionality at affordable prices, rendering the kind of savings that pay for themselves within months. One such product is VSc Solutions’ Motion, a route-planning tool that generates the most efficient possible routes for daily distribution needs.
“Having punched in the required deliveries, locations and available vehicles, the system produces the most efficient possible scenarios,” he says. “The kind of efficiency that allows companies to increase the number of orders they handle without having to buy more vehicles.”
That means increased profits and more cash available to pump into paying off loans, buying new equipment and staffing up to enable the next phase of growth for the company.
Another excellent outcome is happier customers, which inevitably leads to more business. As Marshbank explains, the system can be set up to SMS customers when their deliveries are en route and even updating them if there are delays.
“It’s this kind of professionalism in service that builds good customer relationships and helps companies attract new business,” he says.
“Investing in a route planning tool should be viewed by companies as an essential investment in their growth,” concludes Marshbank. “It’s the kind of investment that renders not only immediate returns, but also long-term ones as the company gears itself for growth.”